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Morgan Advanced Materials 2026 Interim Results 6 August 2026 MMorgan Advanced Materials
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2 Disclaimer For the purposes of the following disclaimers, references to this ‘document’ shall be deemed to include references to the presenters' speeches, the question and answer session and any other related verbal or written communications. This document contains forward-looking statements. These have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. The Directors can give no assurance that these expectations will prove to have been correct. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The Directors undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. 2
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3 Agenda Introduction CEO, Damien Caby Financial Performance CFO, Richard Armitage Strategic Execution CEO, Damien Caby Q&A Richard Armitage, CFO Damien Caby, CEO 3
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4 Key messages • Resilient revenue; encouraging growth in strategic areas • Major site turnaround and Procurement initiatives on track • Focused teams accelerating growth; OEM engagement delivering wins • Strategic Review of Thermal Products progressing well • Strategic Review of Thermal Products progressing well Financial Performance Transform Maximise Drive 4
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Resilient revenue; encouraging growth in strategic areas Market context £494m H1 2025 OCC Energy Aerospace & Defence Industrial & CPI Other Phasing benefit H1 2026 Reported £509m £518m +3.0% • Increased energy demand from data centres and focused commercial strategy drive strong performance in Energy • Strong Aerospace performance driven by new engine and MRO repeat revenue, partly offset by lower demand for body armour in Defence • Revenue benefits from phasing of take-or-pay contract with semiconductor customer; will not repeat in H2 H2 2024 H1 2025 H2 2025 H1 2026 +4.8% Total revenue2 by half 1 OCC represents ‘organic constant-currency’ which is revenue growth excluding the impact of acquisitions, divestments and foreign currency. 2 Revenue presented on an OCC basis for the continuing group, i.e. excluding the results of MMS. OCC1 revenue +1.8% 1 5
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Financial Performance CFO | Richard Armitage
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Performance in-line with expectations OCC1 revenue growth +4.8% H1 20255: (6.1)% decline Adj. operating profit2 £57.8m H1 20255: £54.8m Adj. operating profit2 margin 11.2% H1 20255: 10.9% Adj. earnings per share3 10.7p H1 20255: 9.9p Free cash flow £3.5m H1 20255: £4.6m 1 OCC represents ‘organic constant-currency’ which is revenue growth excluding the impact of acquisitions, divestments and foreign currency. 2 Adjusted operating profit is statutory operating profit, adjusted for specific adjusting items and amortisation of intangible assets. 3 Adjusted earnings per share is defined as operating profit adjusted to exclude specific adjusting items and amortisation of intangible assets, less net financing costs, income tax expense and non-controlling interests, divided by the weighted average number of Ordinary shares during the period. 4 Return on capital is calculated as group adjusted operating profit as a ratio of average adjusted net assets (excluding long-term employee benefits, investments, deferred tax assets and liabilities, current tax payable, provisions, cash and cash equivalents, borrowings, bank overdrafts and lease liabilities). 5 H1 2025 Financial results have been restated following the disposal of the majority of the Molten Metal Systems (‘MMS’) business which completed on 12 November 2025 to present the results of MMS within discontinued operations Return on invested capital4 14.5% H1 20255: 15.4% Financial Performance 34.0% Thermal Products 30.6% Performance Carbon 35.4% Technical Ceramics +7.8% OCC1 4.0% OCC1 2.5% OCC1 Revenue £518.1m +4.8% OCC1 7
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Strong growth in Energy, offset by Defence Performance Carbon • Growth in Energy led by strong demand in Wind market • Aerospace & Defence impacted by lower demand for body armour • Softer demand and inventory adjustments led to weaker demand for Industrial Equipment and Pumps • Margin of 17.1% (H1 2025: 16.4%) positively impacted by phasing of £8.9m take-or-pay receipt; will not repeat in H2 Revenue2 by half 1 OCC represents ‘organic constant-currency’ which is revenue growth excluding the impact of acquisitions, divestments and foreign currency. 2 Revenue presented on an OCC basis for the continuing group, i.e. excluding the results of MMS. 1 OCC1 revenue H2 2024 H1 2025 H2 2025 H1 2026 +4.0% 8 H1 2025 OCC Energy Aerospace & Defence Industrial & Other H1 2026 Take -or-pay H1 2026 Reported £152.2m £149.4m £158.3m (1.8)% +5.8%
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Revenue2 by half 9 Aerospace & Defence and Energy growth drive strong profit performance Technical Ceramics • Strong growth in Aerospace & Defence where our ceramic cores are a critical component in the manufacture of jet engine turbine blades • Growth in Energy driven by increased demand for gas turbines to meet data centre growth • Improved margin at 13.0% (H1 2025: 11.7%) due to strong drop through on revenue growth OCC1 revenue H1 2025 OCC Aerospace & Defence Energy H1 2026 Reported £170.4m £183.7m +7.8% 1 OCC represents ‘organic constant-currency’ which is revenue growth excluding the impact of acquisitions, divestments and foreign currency. 2 Revenue presented on an OCC basis for the continuing group, i.e. excluding the results of MMS. 1 H2 2024 H1 2025 H2 2025 H1 2026 +7.8%
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Revenue2 by half 10 Revenue growth; margin impacted by Q1 operational performance Thermal Products • Strong performance in Asia, particularly in India and China from the Metals Processing market • Increased CPI project revenue and demand for our innovative energy storage solutions in North America • Europe negatively impacted by geopolitical conditions weighing on investment in process industries • Margin of 6.4% (H1 2025: 7.7%) was impacted by operational challenges in North America during Q1 H2 2024 H1 2025 H2 2025 H1 2026 +2.5% H1 2025 OCC Asia & RoW Americas Europe H1 2026 Reported £171.8m £176.1m +2.5% 1 OCC represents ‘organic constant-currency’ which is revenue growth excluding the impact of acquisitions, divestments and foreign currency. 2 Revenue presented on an OCC basis for the continuing group, i.e. excluding the results of MMS. 3 2025 H1 Financial results have been restated following the disposal of the majority of the Molten Metal Systems (‘MMS’) business which completed on 12 November 2025 to present the results of MMS within discontinued operations 1,2,3 OCC1 revenue 3 3 3
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H1 2025 Prior year non-repeat Volume & Mix H2 2025 Efficiency Simplification Operational inefficiency Take-or-pay phasing H1 2026 +1.9% 7.9% 11.2% 1 H1 2025 Financial results have been restated following the disposal of the majority of the Molten Metal Systems (‘MMS’) business which completed on 12 November 2025 to present the results of MMS within discontinued operations 2 Adjusted operating profit is statutory operating profit, adjusted for specific adjusting items and amortisation of intangible assets. Financial Performance Strong sequential margin improvement; supported by efficiency gains • Strong sequential performance from a H2 2025 margin significantly impacted by volume & mix • Strong efficiency performance and incremental simplification benefits continue to support margin • Q1 temporary operational issues now resolved • Phasing benefit of take-or-pay income impacts H1 reported margin (2.0)% 10.9% +1.6% 11 21, 2 +0.6% (0.8)%(1.0)% +170 bps 1, 2
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12 Financial Performance Continuing operations; £m H1 2026 H1 20252 Net restructuring charge (4.7) (5.8) Impairment relating to restructuring (4.7) (1.3) Global ERP implementation (11.5) (5.6) Movement in fair value of consideration shares held at FVTPL 2.5 - Total (18.4) (12.7) 1 Specific adjusting items from continuing operations of the Group, before tax. 2 2025 excludes specific adjusting items associated with discontinued operations. Specific adjusting items1 Restructuring includes costs associated with the closure of Technical Ceramics site in the USA Global ERP implementation progressing well
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H1 2026 £m H1 2025 £m EBITDA 78.5 74.6 Net working capital (23.5) 6.3 Net capital expenditure (12.5) (38.9) Net interest (9.5) (9.0) Tax paid (11.5) (12.0) Exceptional items (15.2) (11.4) Lease payments (6.3) (5.8) Other items 3.5 0.8 Free cash flow 3.5 4.6 Dividends paid (18.8) (19.1) Other items (5.5) 0.4 Share buyback (0.1) (8.8) Movement in net debt (20.9) (22.9) Cash flow movements £31m £13m £15m £19m £6m £232m 2025 Net Debt FCF (ex Capex & Exceptionals) Capex Exceptional items Dividends Other £253m H1 2026 Net Debt 2.0x 1.8x Financial Performance • Net working capital includes a net £4.4m benefit from supplier financing and non-recourse debt factoring programmes • Balances on these programmes were £42.6m at H1 2026 13 Leverage in-line with expectations
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14 Inorganic investment Returns exceed the cost of capital in third full year Additional returns Further shareholder returns, as appropriate Surplus capital • Prioritise return to target leverage range through trough of cycle: 1.0x to 1.5x, or up to 2.0x post-acquisition • Investment focused on efficiency, limited capacity needs • CAPEX ~1.2x depreciation • Dividend maintained then growing with adjusted earnings at ~2.5x cover Strong balance sheet Organic investment Regular returns 1 2 3 Financial Performance Capital allocation prioritises growth and returns
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15 Financial Performance Continuing operations; £m 2026 Guidance 2025 Reported Translational foreign exchange Revenue impact n/a ~£(31)m Adjusted operating profit impact n/a ~£(7)m Other items Business simplification (exceptionals) ~£10m £13m ERP investment (exceptionals) ~£22-24m £13m Net capital expenditure ~£50m £66m Net financing costs ~£22-26m ~£22m Effective tax rate (pre-exceptionals) 27-29% 27.5% Leverage ~1.7x by year end 1.8x Capital expenditure guidance unchanged, weighted towards H2 due to project phasing Leverage begins to return to target range in H2, following disposal of MMS consideration shares ERP investment to peak as roll-out to major sites continues during 2026, with project completion expected by end 2027 Technical guidance
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16 • OCC1 revenue growth of ~2% • Noting a headwind due to foreign exchange, adjusted operating profit2 margin for the second half broadly in-line with the first half, excluding the phasing benefit of £8.9m from the take-or-pay agreement • Guidance reflects the first benefits of Transform Full year outlook Outlook 1 OCC revenue growth is ‘organic constant-currency’ revenue growth excluding the impact of acquisitions, divestments and foreign currency over the 2025 full year continuing revenue of £996.6m 2 Adjusted operating profit is statutory operating profit, adjusted for specific adjusting items and amortisation of intangible assets.
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Strategic Execution CEO | Damien Caby
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Unlocking our potential and driving margin enhancing growth 01 02 Transform operational effectiveness Drive stronger growth Maximise portfolio value Strategic levers • Augment operational excellence, step-up supply chain effectiveness • Turnaround underperforming sites • Enhance and expand value proposition via strategic collaborations • Expand in focus areas with strong right to win • Pursue partnerships and bolt-on M&A • Divest if we are not the right owner Our strategy 18
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19 2025 2026 2027 Beyond… Strategic execution Focus area Large site turnaround Procurement Digital & Back-office transformation 1st site 2nd site Further sites Sustained improvement Group-led procurement Savings delivery Shared services ERP Leverage capabilities Category management embedded ERP pilot Strong roll-out progress We are executing our strategy at pace
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20 2025 2026 2027 Beyond… Strategic execution Focus area Large site turnaround Strengthen position in value chain Procurement Digital & Back-office transformation Capacity expansion 1st site 2nd site Further sites Sustained improvement Group-led procurement Savings delivery Shared services ERP Leverage capabilities OEM collaboration Value chain advancement Vehicle Armour capacity Ion Implantation capacity Further incremental capacity Category management embedded ERP pilot Strong roll-out progress OEM collaboration in Rail We are executing our strategy at pace
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21 2025 2026 2027 Beyond… Strategic execution Focus area Partnering Large site turnaround Strengthen position in value chain Procurement Digital & Back-office transformation Capacity expansion Portfolio optimisation 1st site 2nd site Further sites Sustained improvement Group-led procurement Savings delivery Shared services ERP Leverage capabilities OEM collaboration Value chain advancement Vehicle Armour capacity Ion Implantation capacity Further incremental capacity Establish partnerships MMS disposal Strategic Review of Thermal Products Category management embedded ERP pilot Strong roll-out progress OEM collaboration in Rail PFP partnership We are executing our strategy at pace Strategic Review implementation
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22 Augusta transformation Optimising the operating model to drive profitable growth Transform Augusta, GA ~380 employees Insulation Castable Bricks Objectives • Expand margins with an improved operating model • Drive growth with an optimised product portfolio, supported by a reorganised commercial structure • Enhance execution through integrated supply and operations across the region
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23 Transforming our Engineered Ceramics footprint Rebalancing production to better utilise global resources Transform ~5,000k sq. ft ~380 employees Hayward, CA ~100 employees Metallised Ceramic Component Metallised Ceramic Assembly Objectives • Optimise asset utilisation by rebalancing production across manufacturing sites • Enhance margins by improving cost competitiveness with a more efficient production footprint
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24 Driving growth through market outperformance Growing in attractive markets where we have the right to win Rail Wind Drive Energy storage Displacing incumbents with solutions more suited to emerging requirements Securing new customers in Asia with best-in-class operational value Generating aftermarket pull-through locked-in via product innovation Market examples Structural demand driven by battery safety and thermal runaway protection Installed base and transport investment support continued demand Long-term demand for renewable generation and service activity
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25 Key messages • Resilient revenue; encouraging growth in strategic areas • Major site turnaround and Procurement initiatives on track • Focused teams accelerating growth; OEM engagement delivering wins • Strategic Review of Thermal Products progressing well • Strategic Review of Thermal Products progressing well Financial Performance Transform Maximise Drive 25
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Q&A
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Appendix
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28 Financial framework Organic revenue growth GDP+ + Continuing profit growth 12% to 14% adjusted operating profit margin + Accretive M&A ROIC 17-20% + Additional shareholder returns Leverage 1.0x to 1.5x, up to 2.0x post-acquisition = EPS growth Sustained EPS growth Delivering sustainable EPS growth Clear financial framework targets Appendix
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29 Financial calendar Appendix Event Date Trading update November 2026 FY 2026 Results March 2027
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30 Consensus forecasts Appendix Morgan Advanced Materials is covered by various financial analysts. The consensus information in the table above is provided for information purposes only and does not represent any verification or endorsement of analysts’ estimates by Morgan Advanced Materials. The consensus above reflects the estimates of financial analysts up to and including 5 August 2026. 1 Adjusted operating profit is statutory operating profit, adjusted for specific adjusting items and amortisation of intangible assets. 2026 2026 (Range) 2027 2027 (Range) Revenue 1,010 1,001 – 1,020 1,045 1,033 – 1,051 Adjusted operating profit1 99 97 – 102 111 103 – 114 Adjusted operating profit1 margin 9.8% 9.7% – 10.0% 10.6% 10.0% - 11.0% EPS 17.3 16.3 – 18.3 20.7 18.5 – 21.8 Leverage 1.7x 1.6x – 1.8x 1.5x 1.3x – 1.8x
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31 Segmental performance Appendix 1 OCC represents ‘organic constant-currency’ which is revenue growth excluding the impact of acquisitions, divestments and foreign currency. 2 2025 H1 Financial results have been restated following the disposal of the majority of the Molten Metal Systems (‘MMS’) business which completed on 12 November 2025 to present the results of MMS within discontinued operations 3 Adjusted operating profit is statutory operating profit, adjusted for specific adjusting items and amortisation of intangible assets. Revenue £m Adjusted operating profit3 £m Margin % H1 2026 H1 20252 Change % OCC1 Change % H1 2026 H1 20252 H1 2026 H1 20252 Performance Carbon 158.3 154.1 2.7% 4.0% 27.0 25.2 17.1% 16.4% Technical Ceramics 183.7 173.0 6.2% 7.8% 23.8 20.2 13.0% 11.7% Thermal Products 176.1 175.4 0.4% 2.5% 11.3 13.5 6.4% 7.7% Corporate costs - - - - (4.3) (4.1) n/m n/m Continuing operations 518.1 502.5 3.1% 4.8% 57.8 54.8 11.2% 10.9%
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32 Foreign currency impacts Appendix The principal exchange rates used in the translation of the results of overseas subsidiaries were as follows: For illustrative purposes, the table below provides details of the impact on 2026 H1 revenue and adjusted operating profit1 if the actual reported results, calculated using 2026 H1 average exchange rates, were restated for GBP weakening by 10 cents against USD in isolation and 10 cents against the Euro in isolation: 1 Adjusted operating profit is before specific adjusting items and amortisation of intangible assets. Increase in H1 2026 revenue/adjusted operating profit if: Revenue Adjusted operating profit1 £m £m GBP weakens by 10c against USD in isolation 19.1 2.4 GBP weakens by 10c against the Euro in isolation 9.3 1.4 H1 2026 H1 2025 GBP to: Closing rate Average rate Closing rate Average rate USD 1.32 1.34 1.37 1.30 Euro 1.16 1.15 1.16 1.19
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33 Adjusted earnings per share Appendix 1 2025 H1 Financial results have been restated following the disposal of the majority of the Molten Metal Systems (‘MMS’) business which completed on 12 November 2025 to present the results of MMS within discontinued operations £m H1 2026 H1 20251 Profit for the period attributable to shareholders of the Company 12.3 15.0 Loss from discontinued operations - 0.9 Profit from continuing operations 12.3 15.9 Specific adjusting items 18.4 12.7 Amortisation of intangible assets 0.3 0.5 Tax effect of the above (1.7) (1.2) Non-controlling interests' share of the above adjustments - - Adjusted earnings 29.3 27.9 Weighted average number of shares in the period 276.1 280.8 Adjusted earnings per share (pence) 10.7p 9.9p
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34 Reported statutory figures Appendix 1 2025 H1 Financial results have been restated following the disposal of the majority of the Molten Metal Systems (‘MMS’) business which completed on 12 November 2025 to present the results of MMS within discontinued operations H1 2026 H1 20251 £m Results before specific adjusting items Specific adjusting items Total Results before specific adjusting items Specific adjusting items Total Revenue 518.1 - 518.1 502.5 - 502.5 Operating costs before amortisation of intangible assets (460.3) (18.4) (478.7) (447.7) (12.7) (460.4) Profit from operations before amortisation of intangible assets 57.8 (18.4) 39.4 54.8 (12.7) 42.1 Amortisation of intangible assets (0.3) - (0.3) (0.5) - (0.5) Operating profit 57.5 (18.4) 39.1 54.3 (12.7) 41.6 Net financing costs (11.6) - (11.6) (10.8) - (10.8) Profit before taxation 45.9 (18.4) 27.5 43.5 (12.7) 30.8 Income tax expense (13.1) 1.7 (11.4) (12.0) 1.2 (10.8) Profit from continuing operations 32.8 (16.7) 16.1 31.5 (11.5) 20.0 Profit / (loss) from discontinued operations - - - 2.4 (3.3) (0.9) Profit for the year 32.8 (16.7) 16.1 33.9 (14.8) 19.1 Profit the year attributable to: Shareholders of the Company 29.0 (16.7) 12.3 29.8 (14.8) 15.0 Non-controlling interests 3.8 - 3.8 4.1 - 4.1
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35 Progress against our ESG commitments Appendix 1 Scope 1 and 2 CO2e down 8% 5 Annualised 57% below 2015 baseline (2030 Goal: 50% below) 74% low carbon electricity supply 2 Water usage down 14% Annualised 47% below baseline (2030 Goal: 30% below) 3 Women in leadership: 36% (2030 Goal: 40%) 4 LTA at 0.19 (2030 Goal: below 0.10) Absolute CO2e emissions1 211 158 153 145 74 171 2022 2023 2024 2025 H1 2026 Target 2022 2023 2024 2025 H1 2026 Target 1.93 1.72 1.61 1.43 0.62 1.63 Water usage2 0.28 0.19 0.13 0.18 0.19 0.10 2022 2023 2024 2025 H1 2026 Target Lost time accident rate3 29 30 34 36 36 40 2022 2023 2024 2025 H1 2026 Target % Female leadership4 1 Scope 1 and 2 CO2e emissions from direct and indirect sources, ‘000 metric tonnes. 2 Water usage, million m3 3 Lost time accidents / 100,000 hours worked 4 Leadership population consists of approximately 400 of the most senior individuals in the organisation 5 This drop includes the year over year benefit of the MMS disposal